GST on Biscuits 2026 — 18% Standard Rate, 5% for Economy Biscuits Below ₹100/kg

Updated: 3 June 2026 | CGST Act | GST Council & CBIC FAQ | HSN 1905

GST on biscuits: Most biscuits (Marie, cream biscuits, cookies, premium biscuits) — 18% GST. Economy biscuits priced below ₹100 per kilogram (e.g., Parle-G, basic glucose biscuits) — 5% GST (confirmed by CBIC FAQ). The threshold is based on MRP per kg. HSN code: 1905 31 (sweet biscuits). Manufacturers may claim full ITC on inputs at both rates.

5% / 18%

5% GST on biscuits below ₹100/kg | 18% GST on all other biscuits
CBIC FAQ-confirmed rate split — check the per-kg MRP on the pack to determine the applicable rate.

GST Rates on Biscuits — Brand-Wise & Type-Wise Table

Biscuit Type / Brand	Price Bracket	HSN Code	GST Rate
Glucose biscuits (basic economy)	Below ₹100/kg	1905 31	5%
Parle-G (glucose biscuit)	Below ₹100/kg	1905 31	5%
Britannia Glucose-D	Below ₹100/kg	1905 31	5%
Marie biscuits	Above ₹100/kg	1905 31	18%
Cream biscuits (Oreo, Hide & Seek)	Above ₹100/kg	1905 31	18%
Butter biscuits (Britannia Good Day)	Above ₹100/kg	1905 31	18%
Cookies (premium)	Above ₹100/kg	1905 31	18%
Digestive biscuits (McVitie's)	Above ₹100/kg	1905 31	18%
Crackers / salted biscuits (Monaco, Cream Cracker)	Above ₹100/kg	1905 31	18%
Wafers and waffle biscuits	Above ₹100/kg	1905 32	18%
Chocolate-coated biscuits	Above ₹100/kg	1905 31	18%
ITC Sunfeast (Dark Fantasy, Bourbon)	Above ₹100/kg	1905 31	18%
ITC Sunfeast Marie Light	Above ₹100/kg	1905 31	18%
Rusk / toast biscuits	Varies	1905 40	5% or 18%*

*Rusk is classified separately; plain/unbranded rusk may attract 5% while branded premium toast attracts 18%.

The ₹100/kg Price Threshold — How It Works

The GST rate for biscuits depends on the retail sale price (MRP) expressed per kilogram. To determine whether a packet of biscuits falls under the 5% or 18% rate:

1. Look at the MRP printed on the packet.
2. Calculate the per-kilogram price (MRP ÷ net weight in kg).
3. If the per-kg price is below ₹100 — the applicable GST rate is 5%.
4. If the per-kg price is ₹100 or above — the applicable GST rate is 18%.

Example: A 100g pack of Parle-G priced at ₹5 = ₹50/kg — attracts 5% GST. A 150g pack of Good Day Butter priced at ₹30 = ₹200/kg — attracts 18% GST. Manufacturers must apply this test at the time of supply and issue GST invoices with the correct rate.

GST on Biscuits — History and GST Council Decisions

When GST was introduced on 1 July 2017, biscuits were placed uniformly in the 18% slab. This caused significant controversy, particularly for manufacturers of economy/glucose biscuits like Parle Products, who argued that biscuits below ₹100/kg are a mass-consumption item for lower-income households. The industry lobbied for a rate of 12% or lower for economy biscuits.

The GST Council, in subsequent meetings, clarified via CBIC FAQs that biscuits priced below ₹100/kg are to be treated at 5% — providing relief to manufacturers of glucose and economy biscuits. The 18% rate for premium, cream, and specialty biscuits has been retained. There have been periodic representations to bring all biscuits down to 12% or 5%, but no uniform rate reduction has been implemented as of June 2026.

ITC Rules for Biscuit Manufacturers (Including ITC Ltd)

Biscuit manufacturers — including major players like Parle Products, Britannia Industries, and ITC Ltd (Sunfeast) — can claim Input Tax Credit on all raw materials and inputs used in manufacturing. This includes GST paid on wheat flour (maida), sugar (if taxable), palm oil, vanaspati, cocoa, milk solids, packaging (plastic wrappers, cartons), machinery, and factory services. The ITC chain is available from raw material procurement through distribution, as biscuits are primarily sold through B2C channels where the end consumer cannot claim ITC. For exports, manufacturers can claim a refund of accumulated ITC under the GST refund mechanism.

Frequently Asked Questions

What is the GST rate on biscuits in India?

Most biscuits in India attract 18% GST. This applies to cream biscuits, Marie biscuits, cookies, butter biscuits, sandwich biscuits, and premium biscuits regardless of brand. However, the GST Council has clarified (and CBIC FAQ confirms) that biscuits sold at a price below ₹100 per kilogram — typically basic glucose biscuits, Parle-G type biscuits, and similar economy biscuits — attract a reduced rate of 5% GST. The ₹100/kg price threshold is based on the retail sale price (MRP) of the product, and both the manufacturer and the consumer should check this threshold carefully when determining the applicable rate.

Why was GST on biscuits increased from 12% to 18%?

When GST was first implemented in July 2017, biscuits were placed in the 18% slab. Prior to GST, biscuits below ₹100/kg attracted around 12% tax (excise + VAT combined), and biscuits above ₹100/kg attracted higher rates. The GST Council, in its deliberations before launch, decided to place all biscuits under 18% for uniformity. This was a significant increase for manufacturers of economy biscuits like Parle Products, which led to industry lobbying. The GST Council subsequently maintained the differentiation: under ₹100/kg biscuits at 5%, and the rest at 18%. The 18% rate on standard biscuits has not been revised since.

Is GST on Parle-G biscuits 5% or 18%?

Parle-G glucose biscuits — being one of the most affordable biscuits in India and typically priced well below ₹100 per kilogram — attract 5% GST under the concessional rate for biscuits priced below ₹100/kg. Parle Products had been a vocal industry voice advocating for a lower GST rate on economy biscuits to protect affordability for low-income consumers. However, it is important to note that even Parle sells premium variants (cookies, cream biscuits, Krackjack, Monaco) that are priced above ₹100/kg and therefore attract 18% GST. The 5% rate applies specifically to the basic glucose biscuit range falling below the ₹100/kg price point.

Can biscuit manufacturers claim ITC (Input Tax Credit)?

Yes. Biscuit manufacturers registered under GST can claim full Input Tax Credit (ITC) on all inputs used in manufacturing — including wheat flour (maida/atta), sugar, palm oil, flavouring agents, packaging materials, capital goods (machinery), and input services such as transportation and advertising. Since biscuits are a B2C product primarily, manufacturers must ensure their outward supplies are correctly classified (5% or 18% depending on the per-kg price band) and that ITC is only claimed against genuine, matched invoices under GSTR-2B. Composition scheme dealers cannot claim ITC.

What is the HSN code for biscuits under GST?

Biscuits are classified under HSN code 1905 — "Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products." Specifically: HSN 1905 31 covers sweet biscuits; HSN 1905 32 covers waffles and wafers; HSN 1905 90 covers other bakers' wares. The 8-digit HSN code depends on the specific type. The GST rate for HSN 1905 31 (sweet biscuits) is 18%, while economy biscuits below ₹100/kg use the same HSN but attract 5% under the CBIC concessional rate clarification.

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